Scrap Metal Dealer Licence: How to Check a Yard
Before you hand a car to a scrap yard, one check matters more than any other: is the yard licensed? This guide explains what a scrap metal dealer licence is, the two types a yard can hold, and how to check one before you sell. It is a general explainer — it makes no claim about any particular business.
Call 07961 404768WhatsApp 07961 404768What a scrap metal dealer licence is
A scrap metal dealer licence is the permission a business needs to buy and sell scrap metal, including motor salvage. Under the Scrap Metal Dealers Act 2013, no person may carry on business as a scrap metal dealer unless authorised by a licence, and it is an offence to operate without one.
The licence is about the business, not the yard alone. It covers who is allowed to deal in scrap metal, and it sits alongside the separate permit an authorised treatment facility needs to depollute and dismantle vehicles.
Who needs one
Anyone carrying on a business as a scrap metal dealer needs one — whether they run a fixed yard, collect scrap on the move, or deal in motor salvage. The Act brought scrap metal dealers and motor salvage operators under one licensing regime, so a breaker's yard dealing in scrap cars falls inside it.
A licence lasts for three years once granted, and it can be renewed. The local authority must be satisfied that the applicant is a suitable person to carry on business as a scrap metal dealer before it issues or renews a licence.
Site licence vs collector's licence
There are two types of licence, and a dealer can hold only one type from any one local authority. A site licence is for a fixed site: it authorises the licensee to carry on business at a site identified in the licence, and a site manager must be named for each site. It also allows the licensee to transport scrap metal to and from the site.
A collector's licence is for a mobile collector. It authorises the holder to collect scrap metal in the area of the issuing local authority only — it does not authorise the holder to operate a site, and a separate licence is needed from each authority area the collector wishes to work in.
How to check a yard is licensed
Start by asking the yard which licence it holds and which local authority issued it. A site licence should name the site and its manager; a collector's licence should name the licensee, the issuing authority and the date it expires. A yard that is properly licensed should be able to answer those questions plainly.
Then check the answer. Licences are issued by the local authority, so the council for the area where the yard sits is the place to confirm it. A licensed dealer must also keep records of all scrap metal received and disposed of, and keep those records for three years.
What to ask before you sell
Ask which licence the yard holds, which council issued it, and who the named site manager is. Ask whether the yard is an authorised treatment facility, since only a facility can issue a Certificate of Destruction. Ask what paperwork you will receive — the yellow V5C section is yours to keep, and the certificate, where one applies, should arrive within seven days.
Straight answers to those questions are a good sign. Vague answers, or an unwillingness to put anything in writing, are not.
Red flags
Be cautious if a yard cannot say which licence it holds or which council issued it, or if it has no named site manager for a fixed yard. Be cautious if it will not say whether it is an authorised treatment facility, or if it cannot explain what paperwork you will receive.
Be cautious, too, if a yard asks you to hand over the whole V5C including the yellow section, or if it suggests scrapping the car anywhere other than an authorised treatment facility. Both point to a yard that is not following the rules.
Sources
Frequently asked questions
What is a scrap metal dealer licence?
It is the permission a business needs to buy and sell scrap metal, including motor salvage. Under the Scrap Metal Dealers Act 2013, no person may carry on business as a scrap metal dealer without one. The licence is issued by the local authority, lasts three years, and can be renewed if the holder is still a suitable person.
How do I check a yard is licensed?
Ask the yard which licence it holds and which local authority issued it, then confirm it with that council. A site licence should name the site and its manager, while a collector's licence should name the licensee, the issuing authority and the expiry date. A properly licensed yard should answer those questions plainly.
What is the difference between a site licence and a collector's licence?
A site licence is for a fixed yard: it authorises business at a named site, with a named site manager, and allows transport to and from the site. A collector's licence is for a mobile collector working in the issuing authority's area only — it does not authorise operating a site, and a separate licence is needed for each area.
What should I ask a yard before I hand over my car?
Ask which licence it holds, which council issued it, and who the named site manager is. Ask whether it is an authorised treatment facility, since only a facility can issue a Certificate of Destruction. Ask what paperwork you will receive, and keep the yellow section of your V5C yourself.
What are the warning signs of an unlicensed yard?
A yard that cannot say which licence it holds, or which council issued it, is a warning sign, as is a fixed yard with no named site manager. So is a yard that will not say whether it is an authorised treatment facility, or that asks you to hand over the whole V5C including the yellow section.
Related pages
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